Economic Development Effects of Professional Sports

What is it about?

Professional teams and leagues claim new stadiums lead to economic development. We find this is not true by testing for changes in overall employment and overall number of businesses in cities with major league teams, minor league teams, and/or new stadiums. Teams do not lead to economic growth. Instead, they appear to move to cities that are already growing.

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Photo by B on Unsplash

Photo by B on Unsplash

Why is it important?

Billions of dollars in public money is allocated every year to building new stadiums/arenas for major and minor league teams. These expenditures are "justified" on the myth that these new facilities will increase economic activity. We add to the many studies showing that economic gains from sports are indeed a myth.